At Aneuvia, we believe in democratizing financial wellness and investment advice for the betterment of companies, communities and individuals. Here we share our insights, point of view and advice on global impact investing, corporate diversity and inclusion, new financial market trends, impact investment funds and more.
Stay ahead of the curve with insightful news and analysis that can help your company or organization make crucial decisions for better business outcomes.
Want more insights in to your finances? Click here to access Aneuvia's wealth management system.
You may not know this, but you can be an ESG investor even if the only form of investing that you’re active in is retirement savings. If you have a 401k or a 403b, you can roll over your funds into ESG portfolios, which is a great way to demonstrate your values through your investments.
ESG investing is tethered to the philosophy of ‘sustainable investing.’ It involves researching and factoring in environmental, social, and governance issues, in addition to the usual financials, when evaluating potential stocks. By investing your funds into ESG portfolios, you increase corporate accountability. How? As a socially-conscious individual, you can leverage your shareholder position to have a voice and influence corporations to act in the best interest of the environment, society and governance through proxy voting.
Aside from the ability to create change, you’ll also enjoy strong returns. A study from the Financial Times found that approximately six out of ten sustainable funds delivered higher returns than their conventional equivalents over the past decade. Furthermore, according to Morningstar, ESG-focused “sustainable funds" saw net inflows of more than $10 billion in capital during the second quarter of 2020. This brings the year-to-date inflow into ESG investing funds to $20.9 billion. The full-year record in 2019 was $21.4 billion so ESG-focused funds are projected to beat the record by year-end, which shows the future promise of socially conscious investing.
Given the rise of ESG investing, it is smart to incorporate sustainable funds in your 401(k) plans. In fact, many companies recognize that including sustainable portfolio options may be attractive to employees. If your company plan doesn’t include ESG options, you can look up the ESG ratings for the funds they do offer (Some funds have high ESG ratings even if they aren’t advertised as such). Morningstar has a widely trusted sustainability rating system that you can access with a free trial. If you have a 401k or 403b Rollover due to a change in employment and are looking to invest it for impact, please reach out, we'd love to assist you.
We all have a responsibility to care for the planet, the communities we live and work in. It’s incumbent on all of us to be responsible citizens of our society and reflect that shared sense of responsibility through our investment choices. ESG investing is lucrative - not only creating growth, but also fueling good - creating a more sustainable, conscious world.